Private sector economy records fastest growth, PMI Index rises to 65.2

The private sector economy recorded its fastest growth with the headline HSBC Flash India Composite PMI Output Index rising over four points to 65.2 from 61.1 in July, data by S&P Global said.

This is the fastest growth since the start of survey data in December 2005.

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It said the manufacturing and services sectors reported accelerated growth, with services outperforming and registering a fresh survey high in business activity.

The services sector spearheaded this growth with HSBC Flash India Services PMI Business Activity Index soaring to a survey high of 65.6 from 60.5 in the last month.

The HSBC Flash India Manufacturing PMI rose to 59.8 in August from 59.1 in July, its highest reading since January 2008, signalling faster improvement in factory operating conditions.

It further said the hiring activity continued for the 27th straight month. Overall job creation quickened in August, driven by stronger employment growth in services, which offset a marginal slowdown in manufacturing.

The inflationary pressures intensified, with input costs rising due to higher wage bills, particularly in services, and elevated raw material prices.

Output charges were raised at the sharpest pace in 12-and-a-half years, as firms reported that buoyant demand allowed them to pass on higher costs.

International demand was particularly robust, with new export business growing at the fastest pace since composite data collection started in 2014.